NVDA, AMD Stocks Climb After 3 Chinese Firms Reportedly Get US Approval To Purchase Advanced Chips

• Nvidia and AMD shares rose after a Reuters report said three more Chinese companies received U.S. approval to purchase advanced AI chips.
• The latest approvals follow similar authorizations granted in May to companies including Alibaba, Tencent, ByteDance, and JD.com.
• Retail sentiment on Stocktwits remained 'extremely bullish' for Nvidia, while AMD sentiment stayed 'bearish' despite both stocks advancing.

Shares of Nvidia (NVDA) and Advanced Micro Devices (AMD) rose in morning trade on Monday after a Reuters report said three Chinese firms had received U.S. approval to buy Nvidia’s advanced H200 processors.

The report said ZTE Kangxun Telecom and server maker Maginfra have been permitted to purchase Nvidia's ​H200 chips, while Zhuhai Hengqin Yunxiang Zhisheng Network Technology has been cleared to use some AMD chips that rival ​the H200.

This comes after the U.S. in May had cleared around 10 Chinese firms, including ​Alibaba (BABA), Tencent, ByteDance and JD.com (JD), to buy the Nvidia chips. 

AMD’s stock rose almost 4% in midday trade, and NVDA’s stock gained around 3.5% amid a broader recovery in the market. The tech-heavy Nasdaq 100 outperformed the S&P 500, with the Invesco QQQ Trust Series 1 (QQQ) up over 1% on the day. 

However, the retail sentiment on Stocktwits around the two firms diverged sharply. Sentiment around AMD remained in ‘bearish’ territory over the past day, while sentiment around Nvidia trended in ‘extremely bullish’ territory. 

NVDA’s stock remains over 10% below its record high of over $262 seen in May. AMD, on the other hand, is trading around 5% below its record high of over $584 seen just last month. 

China Remains Hidden Catalyst For Nvidia, AMD

The move added another layer to a China story that has remained central to the stock’s valuation even as formal revenue from the country has been constrained. In an earlier interview with Stocktwits, Michael Parekh, a former Goldman Sachs partner, said Nvidia’s reported China revenue does not fully capture its exposure to Chinese AI demand. He estimated that if access normalized, the company could have as much as $10 billion in additional revenue tied to China. 

The latest approvals also show that Nvidia’s China exposure continues to be shaped by ongoing policy developments. The U.S. government has allowed the sale of Nvidia’s advanced H200 chips to China, but approvals have been selective and sometimes conditional. 

Earlier in the day, KeyBanc analyst John Vinh raised the firm's price target on NVDA stock to $330 from $310 and kept an ‘Overweight’ rating on the shares. 

The firm said Nvidia’s recent trip to Asia reinforced that strong AI data center demand is driving semiconductor momentum through stronger analog bookings, persistent memory shortages, higher DRAM and NAND pricing, tighter supply, and increased production across PCs and flagship smartphones.

Read also: IBM Stock Tanks To 2-Month Lows In Pre-Market – CEO Says Company ‘Faltered’ In Q2 As ‘Large Deals Failed To Close’ On Expected Timelines

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